Industrial Strategy has potential to pave way for growth, if combined with pro-small business Budget

Press Releases 14 Oct 2024

FSB reacts to the launch of the Government's Industrial Strategy green paper

Responding to the launch of the Government’s Industrial Strategy green paper, Tina McKenzie, Policy Chair at the Federation of Small Businesses (FSB), said:

“This is a refreshingly thoughtful approach for UK industrial policy. If it’s coupled with a clear pro-small business agenda at the Budget, there will be renewed optimism that the Government can get its growth mission right. 

"It will be crucial that the developing strategy is responsive to the needs of the whole supplier base, particularly where the interests of suppliers and their big customers don't align, and that policy levers are selected that have the reach needed to give a positive business platform for small firms.  

"Small businesses need a renewed focus on economic growth and it’s encouraging that this consultation emphasises the need to drive investment and provide opportunities across our economy and through our international trading relationships.

“This is so much more than having an industrial strategy 'document'. We agree that partnership will be key to creating a nurturing environment for small firms to thrive in, and we're pleased to see a number of the proposals put forward by Iain Anderson in his Anderson Review reflected in today's announcements. 

“The Government has already announced its plans to bring a halt to late payments, which holds thousands of small firms back and makes the economy smaller and less efficient. Progress on this is a major element of industrial strategy, and could show the way for other countries grappling with their approach. It's positive to see the need for a ‘pro-business environment’ featuring so prominently in the green paper.

“It’s crucial the strategy works for small firms, as well as big, and addresses the issues that SMEs deal within these sectors and areas - and we look forward to working with Government to provide the small business voice as the strategy moves forward.

“Small firms are keen to innovate and take on new technology, yet are often held back by a lack of time and funding. We hope that this strategy will place a renewed emphasis on enabling small firms to use new ideas and tech, increasing their adoption further, boosting R&D support and increasing the UK’s productivity.

"As we head towards the Budget at the end of the month we hope to see more from the Government to help secure sustainable, long-term economic growth, including on our calls for measures to ease employment costs, remove barriers to access finance for investment, and lift more small firms out of business rates.”